Choosing a Property Manager
Choosing a property manager can be a difficult process. Unless you have a referral, you don't know the person, how they perform their business or their level of engagement with the properties they manage.
There are a number of things you might consider when choosing a property manager:
- Property Manager Experience
- Years of experience can influence the ability of your property manager to "see around corners" for potential problems
- Years of evaluating and leasing to tenants can help ensure the best tenants are placed
- Property Manager Qualifications
- Educational experience can influence how a property manager makes decisions.
- Field experience also makes a huge difference. If your property manager knows construction, landscaping or other attributes of home ownership, that can benefit the management of the property for both the owner and the tenant.
- Property Manager Attitude
- It has been said that "attitude is everything". It may sound funny but someone that get's things done, goes the extra mile and is someone you feel you can work with is important. You're going to trust this person with a valuable asset and you want to make sure you feel comfortable with that person and how they conduct themselves.
- Licensing & Law
- In the state of California you must be a licensed real estate agent to manage any property other than your own.
- Real estate contracts have grown complex over the years. You'll want to make sure you have a property manager that understands and can explain all the terms.
In addition to the property manager themselves you'll want to evaluate the firm and their business practices. You should be able to get timely, straight answers to your questions whether you are a tenant or an owner. Some things you may want to consider are:
- The Firms Systems
- Some property management companies allow renters to pay by more convienent means than checks alone. Most firms today direct deposit owner funds to speed cash flow.
- Ledger access allows both tenants and owners to view payments, expenses and charges while also allowing those parties to run reports and print statements anytime from anywhere.
- The Firms Processes
- Process as mundane as it is, can be the key to a succesful property manager/owner/tenant relationship. This includes things like the accounting system, standardized forms, lease up processes, greivence processes, property showing standards etc.
- The Firms Qualifications
- The firm should be managed by a broker that understands property management and does not treat it like a black sheep
- The firm should be investing in technology and process improvement
- The firm should sponsor training for property managers so they stay on top of current law and new developments in the field
- The Firms Reach
- Some property management firms specialize in small areas and some have multiple offices that cover wide geographic areas. Make sure your property manager has the right reach to meet your needs.